Strategic Management (Fach) / Ten schools of thought about strategy making (Lektion)
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3) The positioning school:
A) BCGs portfolio matrix:
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- Cost-based concept / Growth-Share Matrix
- Organizations should have not only Cash-Cows but also invest in new products
- Foundation of the matrix is the experience curve: It states that the more often a task is performed, the lower will be the cost of doing it. The task can be the production of any good or service. Each time cumulative volume doubles, value added costs fall by a constant and predictable percentage.
- Y-axis: Annual real rate of market growth (%); X-Axis: Relative Market share (Your own company's market share compared to those of your competitors)
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